A rendering of a renovated 172,000-square-foot warehouse at 1201 Valley Brook Ave. in Lyndhurst — Courtesy: Sitex Group
(Editor’s note: This story has been updated with additional information and a quote from CBRE, which brokered the transaction.)
By Joshua Burd
Sitex Group has acquired a 172,000-square-foot warehouse in Lyndhurst, in the largest of three newly announced additions by the real estate investment firm.
The Lyndhurst property, located at 1201 Valley Brook Ave., is a former distribution center for Barney’s New York sitting just south of the intersection of routes 3 and 17. Sitex acquired the building from a private investor, touting its Meadowlands location along with its 26-foot clear ceiling height, 11 loading docks, trailer parking and more than 165 parking spaces.
The firm is now planning a multimillion-dollar project to modernize the property for today’s users, according to a news release. Renovations will include a complete façade enhancement, new office space, energy-efficient lighting, new loading docks, upgraded sprinkler system and a repaved parking lot and truck court.
“Despite the current economic uncertainty, we remain focused on our core business of acquiring and developing best-in-class industrial properties in strategic locations throughout New Jersey and New York,” Sitex Principal Blake Chroman said. He added: “We’re thrilled to add 1201 Valley Brook to our portfolio. The Meadowlands is one of the most important industrial submarkets in the country. Only a small percentage of warehouse space in the Meadowlands offers ceiling height greater than 24-foot clear.”
CBRE’s Thomas Monahan, Brian Fiumara, Steven D’Amato, Larry Schiffenhaus, Anastasia Lazarides, Lauren Hageman and Gerard Monahan represented the seller, Jos L. Muscarelle. Terms were not disclosed.
“While not completely immune, New Jersey’s industrial market has performed exceptionally well during these trying times for our industry,” Monahan said. “Our team was able to work extremely efficiently and collaboratively with both parties in closing the acquisition of this significant industrial site.”
The Englewood Cliffs-based firm also closed on a 10-acre site at 514-582 South River St. in Hackensack and a 22.5-acre site in Westbury, New York, acquiring the properties from private investors. The sites combine for more than 32 acres of paved parking for motor vehicle, maintenance and fleet storage, putting them in high demand for last-mile distribution.
Both are located in densely populated areas near major highways and New York City.
“Properties offering above-standard car and/or fleet parking have become mission critical for today’s industrial tenants,” Sitex Senior Vice President Zach McHugh said. “Finding opportunities to acquire large, low-coverage sites is incredibly rare.”
Savills’ Dan Foley and Chris Marx negotiated the Hackensack transaction, while Mark Walsh of Select Real Equity Advisors, along with Premier Commercial Real Estate’s Jason Miller and Jeffrey Schwartzberg, negotiated the Westbury deal.